Manufacturing upturn 'fragile'

Manufacturing enjoyed a tentative improvement in the past few months but the upturn was "fragile" and did not happen in every region of the UK, according to a new report.

The CBI said production continued to decline in the East Midlands and Northern Ireland and remained stagnant in Yorkshire and the Humber.

But there was a brighter picture in other regions, including the North West and Scotland where output growth was said to be "strong".

The improvement followed a mild pick-up in new orders earlier in the year, boosted by growth in exports.

Manufacturing firms in some areas, including the South West, suffered a sharp decline in new orders although other areas enjoyed improvements, including Wales, Scotland and the North West.

Wales, Scotland, the South East and London were the most positive areas of the country, said the CBI.

Doug Godden, CBI Head of Economic Analysis, said: "Strong export demand driven by a healthy global economy has helped lift manufacturing output over the past three months, but the sector remains fragile and some regions have fared better than others.

"Disappointing orders are a cause for concern, especially in the South West, although firms nationally remain upbeat about demand next quarter.

"Companies also face continued pressure on profits from rising energy prices and unit costs."